Town to draft budget with maximum of two per cent increase

The town of Amherstburg is going ahead with its 2018 draft budget, with that budget to contain up to a two per cent tax increase.

Council authorized administration to move forward with that plan, with the budget to be tabled Nov. 6. Bill 148, the “Fair Workplaces, Better Jobs Act” that will, in part, increase minimum wage and allow for equal pay for part-time and seasonal employees doing the same job as full-time staff will also impact next year’s budget.

“Although 2016 saw surpluses, administration is requesting council to consider a tax increase. The surpluses of 2016 can be explained by circumstances we do not believe will exist in 2018 as well as the continuing infrastructure needs of the municipality. The recommendation for presentation of up to a two per cent increase to the mill rate is reasonable when considering the consumer price index in Ontario trend, which for the first eight months of 2017 is at 1.2 per cent,” stated director of corporate services/treasurer Justin Rousseau, in his report to town council. “The forecasted growth on the roll return from MPAC from 2017-2018 is forecasting out a 2.4 per cent increase to the town’s assessment base. This coupled with a two per cent increase to the mill rate will provide additional revenue to the town of 4.4 per cent or approximately $880,000. It should be noted the new asset management plan requires an additional $300,000 to be spent on capital, in order to narrow the infrastructure funding gap that currently exists. This request is part of the council approved 20-year financial strategy to replace and repair the town’s infrastructure.”

Councillor Leo Meloche said the two per cent recommendation was higher than the rate of inflation, and the town had a “nice increase” last year when factoring in property values increasing as well.

“I think it would be prudent to stay with the inflation costs,” said Meloche, who advocated for a 1.5 per cent target.

CAO John Miceli said two per cent is a “target that allows administration to weed through the management issues” and is a “general guideline for the treasurer and myself.” It “establishes the ceiling, and not the floor,” he added.

“Council can always reduce that,” said Miceli.

Rousseau said Bill 148, if passed as it currently stands, would impact the town to the tune of $1.6 million. He predicted it will be a challenging budget due to that piece of provincial legislation.

Councillor Diane Pouget said she wants to keep the budget low, but acknowledged there are bridges, culverts and water plant infrastructure that needs to be addressed.

Under the current timetable, a public information session would occur Nov. 18 and council will deliberate the 2018 budget Nov. 28-30. If all goes according to plan, the budget could be approved Dec. 11.